The classical economists had rejected the notion that overall monetary
spending — in current jargon: aggregate demand — is a driving force of
economic growth. The true causes of the wealth of nations are
non-monetary factors such as the division of labor and the accumulation
of capital through savings. Money comes into play as an intermediary of
exchange and as a store of value. Money prices are also fundamental for
business accounting and economic calculation. But money delivers all
these benefits irrespective of its quantity. A small money stock
provides them just as well as a bigger one. It is therefore not possible
to pull a society out of poverty, or to make it more affluent, by
increasing the money stock. By contrast, such objectives can be achieved
through technological progress, through increased frugality, and
through a greater division of labor. They can be achieved through the
liberalization of trade and the encouragement of savings.
~ Jörg Guido Hülsmann, "Why the Austrian Understanding of Money and Banks Is So Important," Mises.org, February 18, 2015
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